The information below relates to “NOT partnership business” for the year ended 31st December, 2019 Nyamekye Oliver Twist GH¢’000 GH¢’000 GH¢’000 Capital Introduced 20,000 30,000 40,000 Drawings 10,000 15,000 20,000 i. Nyamekye is entitled to a salaries amounted to GH¢ 9,350,000 per annum, sharing Profit or loss on the basis of capital contributed. ii. Net profit for the period ended 31st December, 2019 was GH¢ 38,500,000. Interest on drawings and Capital are 5% and 10% per annum respectively. All expenses and incomes accrue evenly. iii. Oliver advanced a loan amounted to GH¢ 300,000,000 to “NOT Partnership Business” on 1st September, 2019 but charged an interest of 12.5% per annum on the loan. iv. Twist Retired on 31st December, 2019 but granted his net worth in the partnership business as a loan to the business charging Interest of 9% per annum on the loan. Required a. Prepare Profit or Loss Appropriation for the year ended 31/12/2019. b. Partners’ Capital Account for the year ended 31/12/2019 in the absence of current account
The information below relates to “NOT
Nyamekye Oliver Twist
GH¢’000 GH¢’000 GH¢’000
Capital Introduced 20,000 30,000 40,000
Drawings 10,000 15,000 20,000
i. Nyamekye is entitled to a salaries amounted to GH¢ 9,350,000 per annum, sharing Profit or loss on
the basis of capital contributed.
ii. Net profit for the period ended 31st December, 2019 was GH¢ 38,500,000. Interest on drawings and
Capital are 5% and 10% per annum respectively. All expenses and incomes accrue evenly.
iii. Oliver advanced a loan amounted to GH¢ 300,000,000 to “NOT Partnership Business” on 1st
September, 2019 but charged an interest of 12.5% per annum on the loan.
iv. Twist Retired on 31st December, 2019 but granted his net worth in the partnership business as a
loan to the business charging Interest of 9% per annum on the loan.
Required
a. Prepare Profit or Loss Appropriation for the year ended 31/12/2019.
b. Partners’ Capital Account for the year ended 31/12/2019 in the absence of current account
Step by step
Solved in 2 steps with 2 images
